Cumberland DRW, a major digital asset trader and liquidity provider, said its New York branch has obtained a virtual currency license (BitLicense) issued by the New York State Department of Financial Services (NYDFS).
“We are pleased that the New York State Department of Financial Services has issued a BitLicense to Cumberland New York,” the company said in a post on its official X (Twitter) account.
The company added: “As one of the few major market makers holding a BitLicense, we look forward to building strong trading relationships with institutional clients in New York State.”
BitLicense is an important regulatory measure for cryptocurrency-related companies introduced by New York State in 2015. Although this system has taken the lead in regulating the emerging crypto industry, it has also attracted criticism from market participants over the years that it has suppressed innovation, and the state auditor general also expressed concerns about the agency's audit process earlier this year.
Cumberland, a subsidiary of Chicago-based high-frequency trading firm DRW, was selected earlier this year as one of the traders for Fidelity Investments’ bitcoin spot exchange-traded fund (ETF), which began trading in January.
In summary, Cumberland DRW's ability to obtain a virtual currency license from the New York State financial regulator highlights the company's leading position in the field of digital asset trading and further consolidates its business in New York State.